The words of Rosa the Russian Beautician captured the vibe at Sydney's 2010 Mardi Gras parade last night.

"Everybody likes dressing up," she said.

"So if anyone wants to jump on the bandwagon..."

Her invitation didn't fall on deaf ears with hundreds of thousands turning up for the event.

Parade watchers began lining the 2km route in the early afternoon, and by the time the show kicked off at 7.45pm (AEDT), crowds were ten-deep and out-of-towners were complaining they couldn't see a thing.

Those organised enough to get a front-row spot waved rainbow flags, and 73-year-old Jim Davies, who went with his wife Glenda, scored a kiss from drag-queen Lovely Liz.

"That's the benefit of turning up early," Jim says.

The couple has a gay grandson and they say they are proud of his sexuality.

They cheered as the raucous parade rolled down Oxford Street from Wentworth Avenue, made a right at Taylor Square and finished at Anzac Parade.

This year's march consisted of about 9000 participants and 135 sparkling floats, belting out iconic gay tunes while teams of frocked-up dancers performed their routines in tow.

Many portrayed this year's theme, History of the World, showcasing gay history and shining a pink light on some colourful historical figures and events.

Osama Bin Laden came out of hiding, while NSW Labor party zombies also reared their ugly heads.

For the first time, a transsexual - US model and performer Amanda Lepore - led the parade.

A float of 150 dancing George Michaels was organised in an attempt to lure the the former Wham! singer along.

There was much speculation he would make a surprise appearance, after plugging the event at his Sydney concert lasts night.